How To Avoid Cash Flow Problems

Google reviews
November 16, 2016
n

The wheels of finance don’t always turn smoothly. As a freelancer or contractor, cash flow is your main concern, and anything impeding it is likely to give you a headache. Yet the means of manning a steady ship, so to speak, are quite simple when you get down to it.

This isn’t to claim that managing your cash flow is entirely pain-free. But it can at least be broken down in terms we can pin to the wall for future reference. Here are Bright Ideas’ firm tips for avoiding any hiccups with your finances…

Time your payments well

Timing is everything where cash flow is concerned. While your revenue may far exceed expenditure over the entire year, you don’t want to be left in the lurch if your clients are being elusive with payment. Remember to schedule forking out for equipment, bills, rental charges and other expenses when you can definitely afford them each month.

To ensure you don’t fall behind in this regard, be voracious with issuing and chasing invoices. By including late payment penalties in the small print, and making each client aware of them, you’re in with a greater chance of managing your payment window.

Save for emergencies

Something unforeseen may happen – a sudden dip in demand for your services, a personal crisis, an investment that’s derailed at the last minute… however fate might choose to express itself, cash flow needs a backup to resist causing you financial nightmares.

You should have enough savings to tide you over for a couple of weeks – ideally months – to keep yourself afloat and those necessary outgoings ticking over. If you are marred by an unfortunate situation, then it’s far easier to dust yourself off and get back to making money.

Bookkeeping software  

Wouldn’t it be brilliant to get some perspective on what’s going in and out of your account? Well, it’s swiftly achievable with a bookkeeping platform like FreeAgent. In addition to securing vital information and evidence in one place, it displays your expenditure, due payments and financial forecasts in real-time.

So rather than being swamped in receipts, invoices, and tax liabilities, you can gain a holistic view of where you’re at, and what’s on the horizon. Give it a whirl after seeing what attributes it has to offer.

Hire an accountancy service

In many cases, a healthy cash flow comes down to understanding its various creases and wrinkles and finding the time to do so. Since you’re naturally embroiled in harnessing your talent for other things, perhaps an accountancy service is just what you need for such a gap to be filled.

Bright Ideas is the ideal right hand of any contractor or freelancer stumped by cash flow troubles. With our expertise to draw on, you’ll have a real grasp of your earning and spending patterns, and how they could be improved.

Our three-tiered accounts packages all come with FreeAgent as standard, adapting to the escalating needs of your earning potential. Contact us on 0161 669 4221 or email Info@biaccountancy.com to steer clear of cash flow issues for good.

freeagent logo

Resources

Recent Articles

25,000 people filed tax returns on New Year’s Day

25,000 people filed tax returns on New Year’s Day

While most of us were ringing in the New Year with a chorus of Auld Lang Syne or nursing a hangover from the revelries, nearly 25,000 people filed their tax return on January 1, 2025, according to HMRC figures. Most people – 2,603 – filed their returns between 14:00...

Stamp Duty thresholds to fall to previous levels from April 1

Stamp Duty thresholds to fall to previous levels from April 1

Anyone buying a property from April 1, 2025, will face higher levels of Stamp Duty Land Tax (SDLT) in England and Northern Ireland as the Stamp Duty thresholds fall back to their previous levels. The current higher threshold of £250,000 before people start to pay SDLT...

Mixed-use property with stables pays less SDLT

Mixed-use property with stables pays less SDLT

Stamp Duty Land Tax (SDLT) is the tax payable on most property purchases within the UK, and the figures for who needs to pay what are set out very clearly by HMRC. But there are times when specific allowances can be made that reduce the amount of SDLT due, and...

Ready to join us?

Whether you’re a contractor, freelancer, or small business, Bright Ideas can help remove the burden of time-consuming and complex finances. We’ll draw on our years of knowledge and experience earned helping sole traders just like you.

When you choose us, you’ll be assigned a dedicated Account Manager who’ll provide one-on-one support that’s customised to your business. Communication is key, so we’ll always answer your questions or requests as soon as we can. In fact, we offer a same-day response guarantee for emails and calls received before 3pm.

Contact us to get started

Give us a call us or send an email today!

Looking to switch accountants?
We make the transition simple.

Does your current accountant give 1-to-1 support? Are they fast and thorough?
Slap-dash services hold businesses back, so try our experts instead.

Move to an accountancy service that goes the extra mile…

Start the conversation

Let’s make your finances Brighter

Call us Monday to Friday 9am - 5pm

0161 669 4221

Request a call back